European shares started off on a mixed note on Thursday as investors awaited a series of interest rate decisions from central banks in Europe. France's snap elections added to the nervousness in the market. In the UK, data showed that inflation fell back to the Bank of England's 2% target for the first time in nearly three years in May, although price pressures in the services sector remained high. The Swiss National Bank (SNB) surprised the market with its second consecutive rate cut, while Norway's central bank, Norges Bank, left policy on hold [ad2c87e8]. The US dollar is trading higher against all G10 currencies except the Norwegian krone. Equities are mixed, with Japan, Hong Kong, and Chinese markets falling while most other large bourses are higher. Benchmark 10-year rates are firm, with European yields up 2-3 bps and core-peripheral spreads slightly narrower. Gold is trading with a firmer basis, while WTI crude oil reached $81.15 before slipping back to around $80.50. Japan reported a smaller trade deficit, helped by a strong rise in exports. The dollar has settled above JPY157 since the US employment data on June 7, reaching nearly JPY158.50 today. The Reserve Bank of Australia's hawkish hold has given the Australian dollar a lift. The PBOC set the dollar's reference rate at its highest level since last November. Two European G10 central banks have already met, with Norway's Norges Bank leaving policy on hold and the SNB surprising the market with a rate cut. The Bank of England's decision is forthcoming. The euro is trading in a range above $1.0725, while sterling has been recording higher lows and highs this week. May US retail sales were weaker than expected, while industrial output surged. The US dollar slipped to five-day lows against the Canadian dollar, holding above CAD1.37. The dollar has spent the last two sessions mostly below MXN18.50 [ad2c87e8].